The Government today
released further details of the partial float of Genesis
Energy, including a 1:15 loyalty bonus share incentive for
New Zealand retail investors.

The Genesis share offer will
open on Saturday, 29 March, Finance Minister Bill English
and State Owned Enterprises Minister Tony Ryall say.

The
sale of Genesis shares, with the company expected to list on
the NZX main board on 17 April, will bring to a close the
Government’s successful share offer programme, Mr English
says.

It follows the float of 49 per cent of Mighty River
Power and Meridian Energy, and the sell down of 20 per cent
of the Crown’s holding in Air New Zealand to 53 per
cent.

“The Government has said it will sell between 30
and 49 per cent of Genesis Energy and the exact amount to be
sold via the bookbuild will be announced on 26 March, before
the bookbuild opens,” Mr English says.

“Proceeds from
the sale will go in to the Future Investment Fund, which has
so far raised about $4 billion for investment in assets like
schools and hospitals, without the need for borrowing from
overseas lenders,” he says.

“At the same time, New
Zealand’s capital markets have been strengthened and New
Zealanders who invested in the stockmarket for the first
time through the Government’s share offers are now earning
dividends from shares.”

• The
indicative share offer price range has been set at $1.35 to
$1.65 per share.

• As with the other share offers, the
minimum application will be $1000.

• Based on the
indicative share offer price range, the prospective 2015
financial year implied gross dividend yield is forecast to
range from 13.5 per cent to 16.5 per cent.

• The amount
of the company to be sold through the bookbuild will be
announced on 26 March.

• The bookbuild will be held on
Thursday 27 March and Friday 28 March to establish the final
share price.

• That price, and the resulting forecast
dividend yield, will be announced on the evening of 28
March.

• The next day, Saturday 29 March, the offer will
open to the public.

• To encourage New Zealand
participation, New Zealanders who buy shares and hold them
for 12 months from allotment date (expected to be 16 April
2014) will be eligible for 1 loyalty bonus share for every
15 shares they hold, with a cap of 2000 bonus
shares.

• The Government is committed to at least 85 per
cent New Zealand ownership at the time of the float, as was
achieved with the previous government share
offers.

“Over the next two weeks, Treasury, its advisers
and Genesis Energy management will market the share offer to
New Zealand broking advisers, New Zealand institutions and
offshore institutions,” Mr Ryall says.

“This process
will allow the Crown to determine the expected demand from
the various investor pools, at which point we will decide
and announce the level of sell down for the bookbuild
process.”

The offer structure allows every NZX
participant share broker in New Zealand to be invited to
take part in the bookbuild. ANZ and ASB are also retail
syndicate members for the share offer.

“The new
structure means New Zealand’s largest sharebrokers are
free to prepare and release research and analysis on the
Genesis Energy share offer, at their discretion,” Mr Ryall
says.

“The NZX has already publicly announced that it
intends to host independent research on its website,” he
says.

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